Exclusive focus on Enterprise Risk Management

Your organisation may understand ‘risk’ exclusively as Enterprise Risk Management (ERM). Understanding business plan risk for work units is not ERM. It is a component of ERM.

What to read first: Risk in work unit business planning: What is it?

New to this Version 3.0 Beta

Your organisation may understand ‘risk’ exclusively as Enterprise Risk Management (ERM). Understanding business plan risk for work units is not ERM. It is a component of ERM.

Risk specialists, responding to the board and C-level, may take the view that risk management in an organisation means Enterprise Risk Management (ERM). Published standards also make this equation.

The Clear Lines on Audit and Risk take a more balanced view.

ERM is risk management for the whole enterprise. ERM may or may not value the work unit view of risk.

From an exclusive focus on ERM, risk specialists may put a heavy emphasis on ‘integration’, which to you may look like ‘conformity’.

The ERM focus may mean you are expected to do your part in managing risk to the enterprise, as part of a big cooperative effort. In that big effort, there may not be a step in which the risks to your unit’s own objectives are considered.

The Clear Lines on Audit and Risk support ERM. They support ERM along with risk management at lower levels of the Enterprise (work units), and thematic views of risk (such as safety and security). They explain Clearly that ERM is strongly supported by the work done at work unit level. They also explain Clearly that ‘integration’ need not mean everyone using the same scales and templates.


Parent articles

Risk in work unit business planning: What is it?

In business planning, ‘risk’ is just the possibility that your unit’s outcomes for the year will be different from those you promise.

New to this Version 3.0 Beta

Index to the topic Risk in work unit business planning

Leave a Reply

Your email address will not be published. Required fields are marked *